Japanese corporations have long lost their positions in the segment of mass consumer electronics under the onslaught of Chinese competitors, and Panasonic can be considered the next fallen bastion. The Japanese corporation will commission the mass TV models to be produced by a Chinese competitor, TCL. The number of Panasonic’s own businesses will be reduced.
The plans of the Japanese giant became known to the Nikkei Asian Review. As the source explains, the parties are now discussing the terms of the contract, and the agreement may be signed as early as next month. Panasonic will maintain its own production of expensive TV models that will be offered in the Japanese domestic market. Panasonic’s core production facilities around the world will be restructured.
Panasonic will discontinue TV production this fiscal year in India and Vietnam. The company will also stop developing low-cost TV models on its own. Previously, Panasonic controlled 10% of the global television equipment market, but in recent years it has lost ground under the onslaught of Chinese competitors, now its share does not exceed 1.8%. First, Panasonic stopped producing plasma TVs, then production in the United States and China was curtailed.
Panasonic’s TVs now account for less than 10% of total revenue. The business returned to profitability last year, but the company cannot count on its long-term stability. Many of Panasonic’s Japanese competitors have already gone through such painful transformations. Hitachi ended its own TV production in 2012 and stopped selling private label devices in 2018. In the same year, Toshiba sold its core business to the Chinese Hisense Group. Only Sony has managed to stabilize TV sales by cutting volumes and trimming the range of models. Panasonic is currently engaged in a restructuring aimed at disposing of non-profitable assets. The TV business will be one of the victims of this transformation.
